Buy-to-let market 'perfect option for investors'

Double-dip recession, the eurozone crisis and a global economic crash - the news headlines hardly make good reading for investors, but one area that has performed strongly in recent years is the private rental sector.

And as both existing and prospective landlords look to take full advantage of the market conditions, Auction Finance Limited have reported that there has been an increase in interest in buy-to-let properties - both in auction rooms and online.

"Over a quarter of searches on property websites are for buy-to-let properties and this figure is rising steadily," said Chris Baguley, director at Auction Finance Limited. "There is no let-up in this sector of the market."

With impressive profits to be made and demand among tenants said to be high, investors can benefit from the boom that has been taking place in the lettings game.

But as with all investment ventures there are a wide range of financial factors that need to be taken into account, and cheap landlord insurance policies can help prevent investors from having to foot extensive repair bills that can result from damage to property.

"The buy-to-let market is the perfect option for investors, especially now while interest rates and property prices remain low," Mr Baguley added.

Meanwhile, with mortgage brokers looking to adopt more responsible lending practices in the wake of the financial crisis, one expert believes that the high deposits now required for purchasing a house are leading people to rent instead.

"I think it is down to people being unable to afford the deposits. It is really tricky to be able to get a foot on the housing ladder now," said Sue Hopson, brand standards director at Martin & Co.

So with landlords looking for opportunities to expand their portfolios and increasing numbers of Brits searching for rental accommodation, it seems that conditions in the buy-to-let market will remain favourable in the coming months.